Owing to relatively stable global oil prices, state-run oil companies slashed petrol prices across the country ranging from Re 0.95 to Rs 1.25 per litre effective Thursday-Friday midnight.
The price of petrol will be revised downward to Rs 67.24 per litre in Delhi from the current Rs 68.19 per litre.
But the cut will vary from state to state depending on the levy of local taxes.
Consequently, for Bangalore, the price of one litre petrol will be Rs 74.22, down from the current Rs 75.47 a litre.
In the rest of Karnataka, it will be Rs 73.67. For Chennai, after inclusion of local taxes, the price cut per litre of petrol will be Rs 1.20 and it will sell at Rs 70.57.
In Mumbai, a litre of petrol will cost Rs 73.53, down from Rs 74.73, In Kolkata, it will cost Rs 74.55 after a reduction of Rs 1.19 per litre.
This is the second time since October that the oil marketing companies have resorted to a slash in petrol prices.
Before this, the price of petrol was revised downward on October 9 by Re 0.56.
Soon after that there was a minor increase by Re 0.29 after the government decided to raise the dealers’ commission last month. “At present, the international oil prices are relatively stable,” Indian Oil Corporation, India’s largest fuel retailer, said in a statement.
It, however, said that there has been a significant volatility in the dollar-rupee exchange rate.
IOC said that the trends in the international market and dollar-rupee exchange rate was being monitored closely and the same will be reflected in the future price changes.
After strengthening for a couple of months, the rupee is again under pressure and slipped close to 55 a dollar mark in the past week.
The rupee lost over one per cent on a single day on Monday, October 12th.
Such a sharp volatility in the Indian currency, if persists, can negate the effects of cooling off of world crude prices, experts said.
The state-run oil retailers, including IOC, have lost over Rs 2,000 crore on selling petrol below cost in the April-September period “due to inability to change retail selling prices to the desired extent in line with market conditions,” the IOC statement said.